Pandemic Impact Portfolio Analysis

NXTanalytic’s Pandemic Impact Portfolio Analysis seeks to provide a holistic portfolio risk/reward perspective starting with a pandemic factor impact analysis and financial ratio and stress test review of each equity position.  

Our portfolio analysis includes individual company analysis plus a comparative analysis of each company’s key pandemic-relevant data findings within a positive and negative overview framework. We also develop a risk and valuation profile to facilitate comparative analysis, across different industries.

Portfolio Holdings Review

A full Pandemic Impact analysis and research report is completed for each equity position, or underlying equity in the case of preferred shares or convertible securities. 

This includes pandemic impact factor screening and scoring, financial stress test reviews, and a cash flow stress test.  Within the portfolio analysis each company is summarized with its most pertinent positive and negative takeaways.

Pandemic-Relevant Data Review

An analysis and review of an assortment of data findings for the portfolio is tabulated, utilizing commonly used financial ratios as well as novel scoring and rating systems (as originally devised at NXTanalytic), and presented to create a visual summary designed to provide the user a fast take on the effects of pandemic impact factors, key financial ratios, and how a reduction in cash flow could affect each company:

Company Risk/Valuation Review

Additional financial ratios are introduced to generate a risk/valuation profile for each company, where the definition of risk in this case refers to the basic viability of a given business and whether or not that company is able to make sufficient sales and generate sufficient revenues to cover its operational expenses (at worst) and turn a profit (at best). 

The following is a chart consisting of each company as plotted via the x-axis (‘Net Debt to EBITDA’) and y-axis (‘EV to EBITDA’), in reference to the respective values as per the table above. It is also segmented into labelled quadrants, serving to broadly differentiate the extremes of both risk and valuation in conjunction to allow for more incisive comparative analysis and discussion as a result:

Pandemic Impact Portfolio Analysis

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